Debtors of Yug Ltd. are of Rs.1,20,000
and Bills Receivables are of Rs.
8,000. If total sales is Rs. 14,60,000 in
which 4/5th is credit sales. Find out
Debtors Ratio(working days in the
year 365).
Answers
Answer:
ANSWER
Average debtors = (Rs. 40,000 + Rs. 1,20,000)/2 = Rs. 80,000
Cash sales = 20% of total sales
= Rs. 4,00,000 x 20%
= Rs. 80,000
Net credit sales = Total sales - Cash sales
= Rs. 4,00,000 - Rs. 80,000
= Rs. 3,20,000
Debtors turnover ratio = Net credit sales/Average debtors
= Rs. 3,20,000/Rs. 80,000
= 4 Times
Answer:
Average debtors = (Rs. 40,000 + Rs. 1,20,000)/2 = Rs. 80,000
Cash sales = 20% of total sales
= Rs. 4,00,000 x 20%
= Rs. 80,000
Net credit sales = Total sales - Cash sales
= Rs. 4,00,000 - Rs. 80,000
= Rs. 3,20,000
Debtors turnover ratio = Net credit sales/Average debtors
= Rs. 3,20,000/Rs. 80,000
= 4 Times